South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)
42nd Edition
ISBN: 9781337702546
Author: James C. Young, William H. Hoffman, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Chapter 19, Problem 29P
To determine
Compute the non-forfeitable percentage for each of the participants depending upon the years of service completed.
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Lender Company provides postretirement health care benefits to employees who provide at least 10 years of service and
reach the age of 65 while in service. On January 1 of the current calendar year, the following plan-related data were
available.
APBO balance
Fair value of plan assets
Average remaining service period to retirement
Average remaining service period to full eligibility
Postretirement Benefit Expense
Service cost
Interest cost
Return on plan assets
Amortization of prior service cost
Postretirement benefit expense
On January 1 of the current year, Lender amends the plan to provide dental benefits. The actuary determines that the cost of
making the amendment increases the APBO by $11,000,000. Management chooses to amortize this amount on a straight-
line basis. The service cost is $31,000,000. The appropriate interest rate is 10%.
($ in millions)
Required:
Calculate the postretirement benefit expense for the current year.
Note: Enter your answers in millions rounded to 2…
A pension plan paid out benefits amounting to $343,200 during the year to retired plan members. The entry reflected in a pension fund work sheet should show
Select one:
a.
DEBIT-Plan Assets; CREDIT-Cash.
b.
DEBIT-Plan Expenses; CREDIT-Cash.
c.
DEBIT-Plan Expenses; CREDIT-Plan Assets.
d.
DEBIT-Defined Benefit Obligation; CREDIT-Cash.
e.
None of the above.
Use the life expectancy table below to answer this question. Greg Brady, age 57, had contributed
$31,000 to his employer's pension plan at the time of his retirement on June 30, Year 1. He
receives a monthly pension of $800 that started on January 1, Year 2, and will continue until he
dies. The amount of his pension reportable as income in Year 2 is:
Age of Annuitant on Start Date / # of Payments
55 and under / 360
/ 310
/ 260
/ 210
/ 160
56-60
61-65
66-70
71 and over
$8,400
O $9,600
O $1,200
O so
Chapter 19 Solutions
South-Western Federal Taxation 2019: Individual Income Taxes (Intuit ProConnect Tax Online 2017 & RIA Checkpoint 1 term (6 months) Printed Access Card)
Ch. 19 - Prob. 1DQCh. 19 - Prob. 2DQCh. 19 - Prob. 3DQCh. 19 - Prob. 4DQCh. 19 - Prob. 5DQCh. 19 - Prob. 6DQCh. 19 - Prob. 7DQCh. 19 - Prob. 8DQCh. 19 - Prob. 9DQCh. 19 - Prob. 10DQ
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